1 november 2016
Social and solidarity economy in the 21st century, a concept in evolution: co-operatives, B Corporations and Economy for the common good it is a dossier written up by Vanessa Campos-i-Climent, assistant lecturer in the Department of Business Administration at the University of Valencia.
All forms of social organization that have existed throughout human history have satisfied human needs in diferent ways. That is, they have given different answers to the three basic questions considered by Economics: "what to produce?", "how to produce it?" and "for whom to produce it?" The only trait that all forms of social organization have in common is their consideration of enterprises as the basic unit of production for goods and services.
Therefore, the way decisions are made in firms – the power game forever determining which interests are given priority over others – is key to understanding how the three above-mentioned questions are resolved. As such, faced with various proposals calling for an enconomy that prioritizes people over capital, we need to consider alternative ways in which business can operate.
In light of the above, this paper reviews the wide range of business models that criticize or question the principal of investor-owned firms, ie organizations whose main goal is not to make a profit whatever the cost. The paper provides an overview and comparison detailing the origins of such business models, which include co-operatives, labour-managed firms, B Corps, and Economy for the common good.
